Industrial Alliance Insurance and Financial Services Inc. started the year on a strong note by recording shareholder net income of $48.8 million, a 15% increase compared to the first quarter of 2005. Diluted earnings per common share reached $0.59, up $0.06 over the same period the previous year.

In terms of business growth, IA experienced one of the best quarters in its history, with sales up by over 10% —sometimes even more — in almost all lines of business, including individual insurance. Premiums and deposits reached a new quarterly high of $1,480.7 million for the first three months of 2006, a 48% increase compared to the same period last year.

“This may be our most satisfying quarter since demutualization,” said Yvon Charest, president and CEO. “Everything came together this quarter. The addition of Clarington Corp. to the Industrial Alliance family, an exceptional RRSP campaign, particularly with respect to segregated fund and mutual fund sales, the end of the restructuring in the retail sector distribution networks following the integration of National Life, the continued progress outside Quebec and the strength of the equity markets gave momentum to our results.”

Sales were very strong in the first quarter in almost all lines of business. Individual insurance sales were 11% higher than the same period last year while individual wealth management was up 73%, group insurance employee plans 14%, group creditor insurance 18% and group pensions 69%. The only sector to experience a slight decrease in sales was group insurance special markets group, which was down 2%.

Not only was the volume of sales high during the quarter, but the sales were profitable because the value of new business grew 22% during the period, to reach $28.9 million — the highest value of new business ever achieved by the company.

The strong growth of sales and the strength of the equity markets pushed assets under management and under administration over the $40 billion mark, to $40.1 billion as at March 31. This is a 5% increase for the quarter and 36% for the last 12 months.